INSIDE INFORMATION

“TORM delivered a strong second-quarter result with continued market-leading performance, against a backdrop of global uncertainty,” says Jacob Meldgaard, adding: “We see strong momentum heading into the second half of the year, and as a result, we are raising our full-year guidance.”

Financial Results

In the second quarter of 2025 TORM (Nasdaq: TRMD or TRMD A) generated time charter equivalent earnings (TCE) of USD 208.2m including unrealized losses on derivatives of USD  -2.2m (2024, same period: USD 325.9m including unrealized losses on derivatives of USD 0.0m). Adjusted EBITDA totaled USD 129.0m (2024, same period: USD 251.1m), while net profit for the period amounted to USD 58.7m (2024, same period: USD 194.2m), thus declining year-over-year due to a normalization of freight rates from the exceptionally strong levels seen in the first half of 2024. However, rates remained stable in the second quarter of 2025 and consistent with those observed in recent quarters, reflecting a resilient market environment.

In the most recent quarter, volatile geopolitical developments and expanded sanctioning of vessels have added further complexity to the tanker market. While product tanker ton-miles began to rebound in March 2025, trade volumes on routes most affected by the Red Sea disruption remained subdued — effectively neutralizing earlier ton-mile gains driven by longer routing.

In this market, TORM achieved TCE rates of USD/day 26,672 on average (2024, same period: USD/day 42,057), and available earning days increased to 7,888 (2024, same period: 7,749). Our vessel class LR2 achieved TCE rates of USD/day 35,459, the LR1 vessels achieved TCE rates of USD/day 27,371, and the MR vessels achieved TCE rates of USD/day 23,345.
For the second quarter of 2025, Return on Invested Capital amounted to 10.0% (2024, same period: 29.5%) reflecting the lower freight rates compared to the very high levels seen a year ago, and basic EPS amounted to USD 0.60 (2024, same period: USD 2.08).

Key Figures

*   Excludes unrealized gains/losses on derivatives.

Vessel Transactions

In the second quarter of 2025, TORM sold and delivered the 2008-built LR2 vessel TORM Mathilde. In addition, the two 2008-built MR vessels TORM Voyager and TORM Discoverer were sold, with TORM Discoverer delivered to its new owner in July, and TORM Voyager scheduled for delivery later in the third quarter of the year.
Financing

TORM has secured financing commitments of up to USD 857m on attractive terms to refinance two existing syndicated loans as well as lease agreements covering 22 vessels. The new structure, combining term and revolving credit facilities, strengthens our capital flexibility. Syndicated loans will be refinanced in Q3 2025, while lease agreements will be refinanced on a rolling basis before the end of Q2 2026 as individual purchase options are exercised.

Distribution of Dividend

TORM’s Board of Directors has today approved an interim dividend for the second quarter of 2025 of USD 0.40 per share to be paid to the shareholders corresponding to an expected total dividend payment of USD 39.2m. The distribution for the quarter is equivalent to 67% of net profit and reflects the Distribution Policy. The payment date is 03 September 2025 to all shareholders on record as of 22 August 2025, and the ex-dividend date is 21 August 2025 for the shares listed on Nasdaq OMX Copenhagen and 22 August 2025 for the shares listed on Nasdaq New York.

Financial Outlook 2025 – INSIDE INFORMATION

As of 04 August 2025, TORM had covered 56% of the Q3 2025 earning days at an average rate of USD/day 30,617 . By vessel class, coverage stood at 63% for LR2s at USD/day 36,670, 54% for LR1s at USD/day  29,285 and 54% for MRs at USD/day 28,436

For the full year 2025 66% of the earning days have been fixed at an average rate of USD/day 27,833. The remaining 34% of the earning days in 2025 – equivalent to 10,892 days – remain open and thus subject to market fluctuations. A change in freight rates of USD/day 1,000 will, all else equal, impact EBITDA by approximately USD 11m.

Based on the earnings realized in the first half of the year as well as the outlook for the remaining part of the year, TORM increases the full-year 2025 guidance. Thus, TCE earnings are expected to be in the range of USD 800 – 950m (previous guidance USD 700 – 900,m) and EBITDA is expected to be in the range of USD 475 – 625m (previous guidance USD 400 – 600m) based on the current fleet size.
Source: TORM